Can Apple pose a threat to the portable market?

[Reasonable]

I doubt it. They have no real experience in the area, and unlike MS I doubt they'd want to buy there way into the club. Even MS seem to be avoiding handhelds - only Sony with PSP and a heck of a lot of patience have got anywhere near taking some share from Nintendo.

I think they'll stick to music and content for a while - in a sense Apple is positioned as the other portable gizmo you have other than a DS.

Personally I prefer PSP to both as it covers games, music, movies, etc. but I think Apple will look at the tough times PSP has faced vs DS and stick to where they know they are the leader.